20230428-国联证券-红日药业-300026.SZ-2023Q1业绩符合预期_国标出台有望助力业绩增长_3页_367kb

Red Sun Pharmaceutical 2023Q1 Quarterly Report Summary

• Company: Red Sun Pharmaceutical (Stock Code: 300026) in the pharmaceutical sector.
• Key Event: Published 2023 Q1 financial results: Revenue of 165.9 billion yuan (down 42.3% YoY), net profit attributable to shareholders of 17.5 billion yuan (down 263.5% YoY), and non-GAAP net profit of 15.7 billion yuan (down 227.4% YoY), aligning with expectations.
• Reason for Decline: Short-term impact from industry standard transition; the company's traditional Chinese medicine granule business faced challenges due to incomplete national and provincial standards for clinical formulations.
• Growth Outlook: Positive drivers include the ongoing release of national standards, expected to reach 300+ by end-2023, along with policies promoting traditional medicine downstream, which could boost sales.
• Financial Predictions: Forecasts for 2023-2025 revenue growth at 2635%/2278%/2378% CAGR 338.7%, net profit growth at 3763%/2836%/3579%, with 27x PE valuation and target price of 772 yuan.
• Rating and Risks: Maintain "Buy" rating considering the company's leadership in granule business. Risks include declining profitability, procurement risks, raw material shortages, and intensified competition.